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PayPal might issue its own cryptocurrency soon, says CoinShares exec

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Global digital payment giant PayPal might be moving into issuing its own cryptocurrency after officially entering the crypto industry, according to a major industry exec.

Meltem Demirors, CSO at digital asset management firm CoinShares, says that she will not be surprised if PayPal issues its own token after the company broke the news of its soon-to-come support for crypto..

In an Oct. 21 interview with CNBC’s Fast Money, Demirors claimed that PayPal’s supporting crypto could eventually become a basis for launching its own, stating:

“I wouldn’t be surprised if, in the next six to 12 months, we see PayPal launching its own digital currency similar to a digital dollar that we see in many payments companies.”

Demirors said that PayPal might be interested in launching its own token as the company officially left the Libra Association, the governing body of Facebook’s Libra digital currency project. A member of the association at the project’s launch in June 2019, PayPal left the initiative several months after, claiming that it does not want the regulatory scrutiny over Libra to “bleed into their business.”

PayPal CEO Dan Schulman subsequently said that that regulation and compliance are foundational for PayPal as a company trusted worldwide. He also stated that PayPal is developing a product that is “not necessarily competitive with Libra.”

On Oct. 21, PayPal officially announced that the company will introduce the ability to “buy, hold and sell” a number of cryptos including Bitcoin (BTC), Ether (ETH), Bitcoin Cash (BCH) and Litecoin (LTC) directly with the PayPal digital wallet. With the new feature, PayPal customers will be able to use their crypto to shop at any of PayPal’s 26 million merchants around the globe starting in early 2021.





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Bitcoin Pushes Towards Highs as Spot Market Gains Full Control

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  • Bitcoin has seen some incredibly strong price action throughout the past few days and weeks, with the selling pressure seen at its key resistance levels not slowing it down
  • Overnight it was able to rally up towards its previous all-time highs, stopping just short of them when bears stepped up the selling pressure at $19,500
  • The rejection here was quite intense and caused it to briefly break below $19,000
  • It does appear to be entering yet another consolidation phase, which could mean it will see a prolonged bout of sideways trading in the near-term
  • One trader is noting that although the cryptocurrency is showing signs of being overheated in the short-term based on multiple metrics, the derivatives market is no longer in control

Bitcoin and the entire crypto market are showing some immense signs of strength. Bulls appear to be in full control, but bears are trying to gain some control following the cryptocurrency’s recent $19,500 rejection.

Sellers have pushed the crypto as low as $18,800, with the buying pressure here being fairly intense.

If it continues holding strong in the near-term, there’s a strong possibility that this level will help catalyze a rebound past the $19,000 level, ultimately leading it to see further upside.

One analyst is noting that although the crypto shows signs of being overheated, the fact that the spot market controls its price action indicates that these signs may be wholly irrelevant.

Bitcoin Rallies Higher as Analysts Eye Upside 

At the time of writing, Bitcoin is trading down marginally at its current price of $18,950. This is a hair below the key $19,000 level that has been acting as resistance.

Any sustained decline below this level could prove dire for BTC, potentially causing it to see further near-term losses.

This ongoing dip comes shortly after it tested $19,500, just a few hundred dollars below its previous all-time high.

Spot Market Takes Control of BTC 

Typically, the derivatives market controls Bitcoin’s price action, which makes using indicators like funding rates quite useful.

During this rally, however, the spot market is in control, which largely makes these indicators useless at the moment. As one analyst noted:

“It’s kinda crazy, but this time is actually different. Derivs are clearly overheated, but the spot market is in control right now.”

Image Courtesy of Byzantine General. Source: BTCUSD on TradingView.

How Bitcoin reacts to $19,000 heading into its daily close should provide some serious insights into where the entire market will trend in the days and weeks ahead.

Featured image from Unsplash.
Charts from TradingView.





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Bitcoin faces this final resistance zone before $20K all-time high

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Bitcoin (BTC) traders are pinpointing the order books of major exchanges that show the $19,500 level is a near-term resistance level.

Bitcoin rejects $19,500 for now

On Nov. 25, Bitcoin price was rejected at $19,500 with a relatively large volume across top spot exchanges. On Binance, for example, BTC price hit $19,484 before seeing a slight pullback to sub-$19,300.

BTC/USDT 4-hour chart (Binance). Source: TradingView.com

The minor rejection likely occurred because of the stacks of sell orders between $19,450 to $19,550.

A popular pseudonymous trader known as “Byzantine General” shared the order books of all major exchanges that showed $19,500 as a key area for sellers.

Vijay Boyapati, a Bitcoin researcher, similarly said that the $19,500 to $19,550 range remains as the last sell wall before a new all-time high.

If Bitcoin does not retest the $19,500 area again in the next several hours, this could mean that another drop is likely. Considering that it would be the last resistance until the new all-time high, traders expect some reaction from sellers.

Another small pullback would benefit Bitcoin because it would further neutralize the futures funding rate. The funding rate of BTC futures has increased once again to 0.07% on Binance Futures and other exchanges.

Considering that the average funding rate of Bitcoin is 0.01%, another short-term drop to reset the derivatives market may even strengthen the upward momentum.

Shorts being at levels unseen since April is a variable

However, a variable to consider is that the number of shorts in the Bitcoin market is at its highest since April 2020.